Search Results

No results found.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Zero Lower Bound on Nominal Interest Rates 

Working Paper
Uncertainty shocks in a model of effective demand

Can increased uncertainty about the future cause a contraction in output and its components? An identified uncertainty shock in the data causes significant declines in output, consumption, investment, and hours worked. Standard general-equilibrium models with flexible prices cannot reproduce this comovement. However, uncertainty shocks can easily generate comovement with countercyclical markups through sticky prices. Monetary policy plays a key role in offsetting the negative impact of uncertainty shocks during normal times. Higher uncertainty has even more negative effects if monetary ...
Research Working Paper , Paper RWP 14-15

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E32 1 items

E52 1 items

PREVIOUS / NEXT